Page images
PDF
EPUB

condition and to make examinations of all banks or
associations doing business under the provisions of
this subchapter.

(f) Prescribing form and terms of bonds and
surety bonds.-To prescribe the form and terms of
farm loan bonds, and the form, terms, and penal
sums of all surety bonds required under this sub-
chapter and of such other surety bonds as they shall
deem necessary,
such surety bonds to cover financial
loss as well as faithful performance of duty.

(g) Regulating payments between banks.-To
require Federal land banks to pay forthwith to any
Federal land bank their equitable proportion of
any sums advanced by said land bank to pay the
coupons of any other land bank, basing said
required payments on the amount of farm loan
bonds issued by each land bank and actually out-
standing at the time of such requirement.

(h) Suspending or removal of directors, registrars, appraisers, and examiners. To suspend or to remove for cause any district director or any registrar, appraiser, examiner, or other official appointed by said administration under authority of sections 651-664 of this chapter, the cause of such suspension or removal to be communicated forthwith in writing by the Farm Credit Administration to the person suspended or removed, and in case of a district director to the proper Federal land bank.

(i) Exercising supervisory authority over banks. To exercise general supervisory authority over the Federal land banks, the national farm loan associations, and the joint stock land banks herein provided for.

(j) Incidental powers.-To exercise such incidental powers as shall be necessary or requisite to fulfill its duties and carry out the purposes of this subchapter. (July 17, 1916, c. 245, § 17, 39 Stat. 375; Mar. 27, 1933, Ex. Or. 6084.)

Authorization to make rules and regulations, see § 665 of this chapter.

"Farm Credit Administration" and "administration" mentioned in the text were substituted for "Federal Farm Loan Board" and "board", respectively, pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

8 841

APPLICATIONS FOR FARM LOAN BONDS

Application; to whom made; collateral security; schedule. Any Federal land bank, or joint stock land bank, which shall have voted to issue farm loan bonds under this chapter, shall make

§ 18

§ 842

written application to the Farm Credit Adminis-
tration, through the farm loan registrar of the dis-
trict, for approval of such issue. With said appli-
cation said land bank shall tender to said farm loan
registrar as collateral security first mortgages on
farm lands qualified under the provisions of sec-
tions 771, 801-808, or 811-824 of this chapter,
[sections 12, 15, or 16 of the Federal Farm Loan
Act, as amended], or United States Government
bonds, not less in aggregate amount than the sum
of the bonds proposed to be issued. Said bank shall
furnish with such mortgages a schedule containing
a description thereof and such further informa-
tion as may be prescribed by the Farm Credit
Administration. (July 17, 1916, c. 245, § 18, 39 Stat.
375; Mar. 27, 1933, Ex. Or. 6084.)

Joint stock land banks prohibited from issuing tax-exempt
bonds after May 12, 1933, except in circumstances permitted
under 810 of this chapter.

"Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

Verification of schedule; investigation and appraisal of securities tendered; decision as to application. Upon receipt of the application provided for in section 841 of this chapter said farm loan registrar shall verify the schedule also provided for in said section and shall transmit said application and said schedule to the Farm Credit Administration, giving such further information pertaining thereto as he may possess. The Farm Credit Administration shall forthwith cause to be made such investigation and appraisement of the securities tendered as it shall deem wise, and it shall grant in whole or in part, or reject entirely, such application. (July 17, 1916, c. 245, § 18, 39 Stat. 375; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

§ 18

§ 843

Transmission of decisions to land bank and registrar; information to be furnished by registrar. The Farm Credit Administration shall promptly transmit its decision as to any issue of farm loan bonds to the land bank applying for the same and to the farm loan registrar of the district. Said registrar shall furnish, in writing, such information regarding any issue of farm loan bonds as the Farm Credit Administration may at any

§ 18

time require. (July 17, 1916, c. 245, § 18, 39 Stat.
875; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was sub-
stituted for "Federal Farm Loan Board" pursuant to the Execu-
tive Order cited thereto, which is set out in full at the beginning
of this chapter.

8844

Written approval of issue requisite.-No issue of farm loan bonds shall be authorized unless the Farm Credit Administration shall approve such issue in writing. (July 17, 1916, c. 245, § 18, 39 Stat. 375; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

§ 18

8 851

8852

ISSUE OF FARM LOAN BONDS

Duties of registrar on approval of bond issue. Whenever any farm loan registrar shall receive from the Farm Credit Administration notice that it has approved any issue of farm loan bonds under the provisions of sections 841-844, he shall forthwith take such steps as may be necessary, in accordance with the provisions of this chapter, to insure the prompt execution of said bonds and the delivery of the same to the land bank applying therefor. (July 17, 1916, c. 245, § 19, 39 Stat. 376; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

Rejection of application; return of collateral security.-Whenever the Farm Credit Administration shall reject entirely any application for an issue of farm loan bonds, the first mortgages and bonds tendered to the farm loan registrar as collateral security therefor shall be forthwith returned to said land bank by him. (July 17, 1916, c. 245, § 19, 39 Stat. 376; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

§ 19

§ 19

853

Disposition of collateral security on approval of application.-Whenever the Farm Credit Administration shall approve an issue of farm loan bonds, the farm loan registrar having the custody of

8 19

§ 854

the first mortgages and bonds tendered as collateral
security for such issue of bonds shall retain in his
custody those first mortgages and bonds which are
to be held as collateral security, and shall return to
the bank owning the same any of said mortgages
and bonds which are not to be held by him as col-
lateral security. The land bank which is to issue
said farm loan bonds shall transfer to said registrar,
by assignment, in trust, all first mortgages and
bonds which are to be held by said registrar as
collateral security, said assignment providing for
the right of redemption at any time by payment as
provided in this chapter and reserving the right of
substitution of other mortgages qualified under sec-
tions 771 and 811-824 of this chapter. Said 'mort-
gages and bonds shall be deposited in such deposit
vault or bank as the Farm Credit Administration
shall approve, subject to the control of said registrar
and in his name as trustee for the bank issuing the
farm loan bonds and for the prospective holders of
said farm loan bonds. (July 17, 1916, c. 245, § 19,
39 Stat. 376; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was sub-
stituted for "Federal Farm Lean Board" pursuant to the Execu-
tive Order cited thereto, which is set out in full at the beginning
of this chapter.

Mortgages eligible as collateral. No mortgage shall be accepted by a farm loan registrar from a land bank as part of an offering to securing* farm loan bonds, either originally or by substitution, except first mortgages made subject to the conditions prescribed in sections 671-683, 711-723, 771, 801808, and 810-824 of this chapter: Provided, That such registrar, when authorized and directed to do so by the Farm Credit Administration, shall accept or retain in his custody as collateral, if otherwise eligible under the provisions of such sections, any first mortgage in connection with which the land bank depositing the same has agreed to defer for a period of not more than ten years the collection of the principal portion of maturing installments and to accept payment of the aggregate amount of such principal on an amortization plan by means of a fixed number of annual or semiannual installments sufficient to cover the interest payable thereon and in addition thereto such amounts to be applied on the principal after the expiration of the period of deferment as will extinguish the debt within an agreed period of not more than forty years from the date of such agreement. (July 17, 1916, c. 245,

So in original.

§ 19

8 855

§ 856

8 857

§ 861

$19, 89 Stat. 376; Mar. 4, 1933, c. 270, § 6 (a), 47
Stat. 1549; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was sub-
stituted for "Federal Farm Loan Board" pursuant to the Execu-
tive Order cited thereto, which is set out in full at the beginning
of this chapter.

Registrar's duty respecting amount of collateral; United States bonds or cash in lieu of mortgages withdrawn.-It shall be the duty of each farm loan registrar to see that the farm loan bonds delivered by him and outstanding do not exceed the amount of collateral security pledged therefor. Such registrar may, in his discretion, temporarily accept, in place of mortgages withdrawn, United States Government bonds or cash. (July 17, 1916, c. 245, § 19, 39 Stat. 376.)

Additional security.-The Farm Credit Admintration may, at any time, call upon any land bank for additional security to protect the bonds issued by it. (July 17, 1916, c. 245, § 19, 39 Stat. 376; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

Purchase money mortgages as collateral in lieu of mortgages withdrawn.-Such farm loan registrar shall also accept purchase money mortgages as collateral security in place of mortgages withdrawn. The banks shall have power to execute all necessary conveyances, transfers, and assignments to carry out this provision. (July 17, 1916, c. 245, § 19, 39 Stat. 376; Mar. 4, 1933, c. 270, § 6 (b), 47 Stat. 1549.)

FORM OF FARM LOAN BONDS

Denominations; minimum and maximum periods; interest coupons; rates of interest.-Bonds provided for in this subchapter shall be issued in denominations of $40, $100, $500, $1,000, and such larger denominations as the Farm Credit Administration may authorize; they shall run for specified minimum and maximum periods, subject to payment and retirement, at the option of the land bank, at any time after the minimum period specified in the bonds, which shall not be longer than ten years from the date of their issue. They shall have interest coupons attached, payable semiannually,

& 19

§ 19

8 19

§ 20

« PreviousContinue »